A 25year old is opening an individual retirement account IRA at a bank. Her goal is to accumulate $1 million in the account by the time she retires from work in 40 years. The bank manager estimates she may expect to recieve 8% nominal annual interest compounded quaterly thourhout the 40 years. The lady believes her income will incresae at a 7% annual rate during her carreer. She wishes to start with as low a depot as possible to her IRA now and increase it at a 7% rate each year. ASsuming end of year deposites how much should she deposit the first year?
How much should she deposit initially to reach $1000000?student loan consolidation
I just plugged this into a spreadsheet and looked at
the numbers for 160 quarters (40 years). If she started
with $1280.79 and deposited 7% more each year
(every fourth quarter), and the bank provided 8% (2%
each quarter), she would have $1000000.7896 at the
end of the 160th quarter.
Unfortunately, Yahoo Answers will squash the leading
blank spaces from the spreadsheet so that the columns
will be misaligned. Hopefully you can see how the
calculation goes.
Deposits Interest Total
1280.7900 0.0000 1280.7900
1 25.6158 1306.4058
2 26.1281 1332.5339
3 26.6507 1359.1846
4 1370.4453 27.1837 2756.8136
5 55.1363 2811.9499
6 56.2390 2868.1889
7 57.3638 2925.5526
8 1466.3765 58.5111 4450.4402
9 89.0088 4539.4490
10 90.7890 4630.2379
11 92.6048 4722.8427
12 1569.0228 94.4569 6386.3224
13 127.7264 6514.0488
14 130.2810 6644.3298
15 132.8866 6777.2164
16 1678.8544 135.5443 8591.6151
17 171.8323 8763.4474
18 175.2689 8938.7164
19 178.7743 9117.4907
20 1796.3742 182.3498 11096.2148
21 221.9243 11318.1391
22 226.3628 11544.5018
23 230.8900 11775.3919
24 1922.1204 235.5078 13933.0201
25 278.6604 14211.6806
26 284.2336 14495.9142
27 289.9183 14785.8324
28 2056.6689 295.7166 17138.2180
29 342.7644 17480.9823
30 349.6196 17830.6020
31 356.6120 18187.2140
32 2200.6357 363.7443 20751.5940
33 415.0319 21166.6258
34 423.3325 21589.9583
35 431.7992 22021.7575
36 2354.6802 440.4352 24816.8728
37 496.3375 25313.2103
38 506.2642 25819.4745
39 516.3895 26335.8640
40 2519.5078 526.7173 29382.0891
41 587.6418 29969.7308
42 599.3946 30569.1255
43 611.3825 31180.5080
44 2695.8733 623.6102 34499.9915
45 689.9998 35189.9913
46 703.7998 35893.7911
47 717.8758 36611.6669
48 2884.5845 732.2333 40228.4847
49 804.5697 41033.0544
50 820.6611 41853.7155
51 837.0743 42690.7898
52 3086.5054 853.8158 46631.1110
53 932.6222 47563.7332
54 951.2747 48515.0079
55 970.3002 49485.3081
56 3302.5608 989.7062 53777.5750
57 1075.5515 54853.1265
58 1097.0625 55950.1890
59 1119.0038 57069.1928
60 3533.7400 1141.3839 61744.3166
61 1234.8863 62979.2030
62 1259.5841 64238.7870
63 1284.7757 65523.5628
64 3781.1018 1310.4713 70615.1358
65 1412.3027 72027.4386
66 1440.5488 73467.9873
67 1469.3597 74937.3471
68 4045.7789 1498.7469 80481.8729
69 1609.6375 82091.5104
70 1641.8302 83733.3406
71 1674.6668 85408.0074
72 4328.9835 1708.1601 91445.1510
73 1828.9030 93274.0541
74 1865.4811 95139.5351
75 1902.7907 97042.3258
76 4632.0123 1940.8465 103615.1847
77 2072.3037 105687.4883
78 2113.7498 107801.2381
79 2156.0248 109957.2629
80 4956.2532 2199.1453 117112.6613
81 2342.2532 119454.9145
82 2389.0983 121844.0128
83 2436.8803 124280.8931
84 5303.1909 2485.6179 132069.7018
85 2641.3940 134711.0958
86 2694.2219 137405.3178
87 2748.1064 140153.4241
88 5674.4142 2803.0685 148630.9068
89 2972.6181 151603.5250
90 3032.0705 154635.5955
91 3092.7119 157728.3074
92 6071.6232 3154.5661 166954.4968
93 3339.0899 170293.5867
94 3405.8717 173699.4585
95 3473.9892 177173.4476
96 6496.6369 3543.4690 187213.5534
97 3744.2711 190957.8245
98 3819.1565 194776.9810
99 3895.5396 198672.5206
100 6951.4015 3973.4504 209597.3725
101 4191.9474 213789.3199
102 4275.7864 218065.1063
103 4361.3021 222426.4085
104 7437.9996 4448.5282 234312.9362
105 4686.2587 238999.1949
106 4779.9839 243779.1788
107 4875.5836 248654.7624
108 7958.6595 4973.0952 261586.5172
109 5231.7303 266818.2475
110 5336.3650 272154.6125
111 5443.0922 277597.7047
112 8515.7657 5551.9541 291665.4245
113 5833.3085 297498.7330
114 5949.9747 303448.7076
115 6068.9742 309517.6818
116 9111.8693 6190.3536 324819.9047
117 6496.3981 331316.3028
118 6626.3261 337942.6289
119 6758.8526 344701.4814
120 9749.7001 6894.0296 361345.2112
121 7226.9042 368572.1154
122 7371.4423 375943.5577
123 7518.8712 383462.4289
124 10432.1791 7669.2486 401563.8566
125 8031.2771 409595.1337
126 8191.9027 417787.0364
127 8355.7407 426142.7771
128 11162.4317 8522.8555 445828.0644
129 8916.5613 454744.6257
130 9094.8925 463839.5182
131 9276.7904 473116.3085
132 11943.8019 9462.3262 494522.4366
133 9890.4487 504412.8853
134 10088.2577 514501.1430
135 10290.0229 524791.1659
136 12779.8680 10495.8233 548066.8573
137 10961.3371 559028.1944
138 11180.5639 570208.7583
139 11404.1752 581612.9335
140 13674.4588 11632.2587 606919.6509
141 12138.3930 619058.0440
142 12381.1609 631439.2048
143 12628.7841 644067.9889
144 14631.6709 12881.3598 671581.0196
145 13431.6204 685012.6400
146 13700.2528 698712.8928
147 13974.2579 712687.1507
148 15655.8879 14253.7430 742596.7816
149 14851.9356 757448.7172
150 15148.9743 772597.6915
151 15451.9538 788049.6454
152 16751.8000 15760.9929 820562.4383
153 16411.2488 836973.6871
154 16739.4737 853713.1608
155 17074.2632 870787.4240
156 17924.4260 17415.7485 906127.5985
157 18122.5520 924250.1505
158 18485.0030 942735.1535
159 18854.7031 961589.8566
160 19179.1359 19231.7971 1000000.7896
No comments:
Post a Comment